ONGC Decides to Farm Out CBM Assets

ONGC has now proposed to farm out operating interests in four coal-bed methane assets, more than six months after it received expression of interests (EoI) from private operators, Business Line reported.

Of the four blocks, Jharia and Ranigunj (North) were awarded to ONGC on nomination basis in 2003. Bokaro and North Karanpura were awarded during CBM Policy-I in 2002.

Great Eastern Energy Corporation (GEECL), Dart Energy, Essar Oil and a consortium of Jindal Steel and Deep Industries are the private players interested in the assets.

Business Line also said that ONGC now proposes to divest upto 35 per cent operating interest in these blocks. The state owned firm now holds 90 per cent operating interest in both Ranigunj and Jharia, and 80 per cent each in Bokaro and North Karanpura.

ONGC is having trouble with these blocks and is unable to produce desired volumes of gas. In Jharia-Parbatpur the company has a single well with miniscule gas output.

Though large quantities of in-place reserves of CBM were also identified in Bokaro, the field is yet to be developed.